If you predecease your wife or if she predeceases you, you/she will receive a step-up in basis on some/all of your investments, meaning that their appreciation will be calculated on the date of death. If you live in a community-property state (Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington and Wisconsin) you receive a step-up in basis on both of your respective portions.You are, to employ a cliche, a victim of your own retirement success. You have invested so prodigiously that ...